So to maximize total revenue, we sell at the price on the demand elasticity curve where elasticity=1 right? Lets say on one curve, the elasticity throughout the curve is equal to 1.5? How much should we decrease the price?

  • $\begingroup$ (-1) This question does not show any research effort. If one understands the logic behind the elasticty 1 thing, one can answer the question easily. $\endgroup$ – Giskard Nov 4 '19 at 6:24
  • $\begingroup$ Elasticity is not constant even with a linear demand curve. $\endgroup$ – Brennan Nov 4 '19 at 7:27

Pick any point on the demand curve. If you were to increase price by $x$ percent, the quantity sold will decrease by $1.5x$ percent.

  • If you increase price, what will happen to your total revenue? Will it go up or down?
  • If you decrease price, what will happen to your total revenue?

Move your point $x$ in the direction that will increase your TR. Do the same thing over and over again. This link might also help you visualize and understand more.

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